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Historic Tax Credits News Briefs - April 2012

Minnesota state Sen. Dave Senjem introduced S.F. 1881 to extend the sunset date of the state's Historic Rehabilitation Tax Credit (HRTC) program from 2015 to 2021. The program allows property owners to receive a state income tax credit of as much as 20 percent of qualifying expenses or a grant in lieu of a credit. Since the HRTC's inception in 2010, 14 projects have created nearly 3,000 jobs and the state has received $9.20 for every $1 spent on the program, according to a report from the University of Minnesota. S.F. 1881 and its companion bill, H.F. 2358, were referred to their respective committees on taxes. Copies of both bills are available at www.historictaxcredits.com.

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Maryland Gov. Martin O'Malley announced the recipients of nearly $7 million under the state's Sustainable Communities Tax Credit program. The six selected projects have a combined development cost of more than $36.5 million and are expected to create 500 construction jobs. The selected projects are Public School No. 37, Hebrew Orphan Asylum, Senator Theatre and Mount Vernon Mill No. 1, all in Baltimore city; Centreville Armory in Centreville; and 1911 Building, in Cambridge. The awardees were selected from a pool of 45 applicants requesting a total of $29.9 million in tax credit awards. In his proposed fiscal year 2013 budget, the governor is again seeking $7 million for the program's next round.

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The Preservation League of New York State is accepting applications for funding through Preserve New York, a grant program administered by the League and the New York State Council on the Arts. A total of $83,674 is available for historic structure reports, historic landscape reports and cultural resource surveys. Municipalities and not-for-profit organizations are eligible to apply for the grants, which will range between $3,000 and $10,000 each. The League said it encourages projects that: advance the preservation of neighborhoods that include properties that qualify for the state historic rehabilitation tax credit; identify and protect at-risk buildings and cultural landscapes; and continue the use of public historic buildings for cultural, interpretive and artistic purposes. The application deadline is May 7. More information on the grant program is available from the Preservation League of New York State.

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In Colorado, which provides a state income tax credit for a qualifying conservation easement created upon real property that is donated to a governmental entity or charitable organization, the state's Court of Appeals has granted an interlocutory appeal in a dispute involving credit transference. All or part of the Colorado credit may be assigned to a transferee taxpayer. In his opinion on the case, Judge James Casebolt wrote that he granted the state Department of Revenue's (DOR's) request for interlocutory appeal because the case involves unresolved legal questions concerning whether tax credit transferees must join the donor taxpayers as plaintiffs in this type of complaint. Furthermore, Casebolt wrote that the case is a matter of widespread public interest, as there are several hundred similar appeals pending and appellate guidance would control the outcome of identical issues in those related cases. A copy of the opinion is available at the Colorado Judicial Branch.

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The Advisory Council on Historic Preservation (ACHP) has issued guidance to help federal agencies and their preservation partners develop and use the prototype programmatic agreement. An alternative to the standard programmatic agreement, a prototype programmatic agreement may be used for the same type of program or undertaking in more than one case or area, and can provide for predictability in costs, time and outcomes. ACHP can designate this type of agreement to help federal agencies comply with Section 106 requirements. A copy of the guidance is available at the Advisory Council on Historic Preservation.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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